Key Factors
The Division of Training reported a significant enhance in processing Earnings-Pushed Compensation (IDR) functions in July, in line with the newest standing report (PDF File).
The company processed 304,844 functions, up from 186,731 in June. Because of this, the IDR backlog fell to 1,386,406, down from greater than 1.5 million on the finish of June. It is also possible that the backlog drop contains among the SAVE plan functions which can be slated to be cancelled.
The backlog discount for IDR functions will possible be welcome information to debtors ready for choices on reimbursement plans that might decrease month-to-month funds or result in eventual mortgage forgiveness.
Nevertheless, for debtors ready for Public Service Mortgage Forgiveness (PSLF) buyback, the information is just not as nice. Whereas software processing elevated, the backlog considerably elevated.
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@thecollegeinvestor The most recent Dept of Training IDR and PSLF buyback processing report simply posted for August 2025 and right here’s what we all know. #studentloans #studentloandebt #pslf ♬ unique sound – The Faculty Investor
IDR Processing Updates
The company processed 304,844 functions in July 2025 – probably the most processed since standing stories had been required by a lawsuit difficult the Division of Training’s dealing with of IDR plans. Because of this, the IDR backlog fell to 1,386,406, down from greater than 1.5 million on the finish of June, one other low.
This marks one of many strongest single-month reductions since April, when simply 79,349 functions had been determined. The development follows months of uneven efficiency, through which features made in Might had been erased by June’s slowdown.
IDR Processing Backlog
Month
April
Might
June
July
Processed
79,349
285,694
186,731
304,844
Backlog
1,985,726
1,582,641
1,511,504
1,386,406
PSLF Buyback Requests Rise
The Public Service Mortgage Forgiveness (PSLF) buyback program additionally noticed a rise in accomplished requests throughout July. The Division processed 3,280 instances, up from 2,224 in June. Nevertheless, nonetheless barely decrease than the Might processing of three,312.
However not like IDR, the PSLF buyback backlog didn’t shrink. Pending instances climbed to 72,730, a rise of greater than 7,000 from the prior month.
Processing stays gradual. Debtors have reported wait occasions of ten months, far longer than the two- to three-month common seen in 2024. A small inside staff handles these requests with out help from mortgage servicers, limiting what number of will be determined every month.
Whereas the processing features are good to see, numerous effort might be wanted to clear the backlog.
PSLF Buyback Processing Backlog
Month
April
Might
June
July
Processed
1,472
3,312
2,224
3,280
Backlog
49,318
58,716
65,448
72,730
Staffing Modifications And Future Processing
The July report comes because the Division prepares for vital modifications in staffing and reimbursement applications. A Supreme Court docket determination earlier this 12 months cleared the way in which for deliberate layoffs, a part of a broader restructuring beneath the Trump administration. The reductions are anticipated to affect all workload related to mortgage forgiveness.
On the similar time, the Division is getting ready for the top of the SAVE plan and the launch of the Compensation Help Plan (RAP) in 2026. Debtors at the moment in forbearance beneath SAVE could wish to change to different reimbursement choices within the coming months, including to the processing burden.
Whereas the July numbers for IDR are encouraging, they solely signify a single month’s knowledge (simply July 2025). If workers reductions proceed as deliberate, sustaining or bettering this tempo could show difficult.
For PSLF buyback candidates, the rising backlog means that with out further assets, even incremental features in processing velocity might not be sufficient to maintain up with demand.
What Debtors Want To Watch
Debtors ready on IDR functions or PSLF buyback requests ought to monitor the Division’s month-to-month stories to trace modifications in processing charges and backlog measurement.
Public service employees pursuing PSLF buyback needs to be ready for lengthy wait occasions and preserve documentation of qualifying employment and cost historical past. For debtors who’re lower than 10 funds away from the 120 mark, it might make sense to modify plans to an lively reimbursement plan and pursue PSLF the “quaint manner” of merely getting qualifying funds.
With the Division balancing a excessive workload, diminished staffing, and upcoming coverage modifications, debtors might face shifting timelines within the months forward. The most recent figures present that progress is occurring but additionally that enhancements in a single space don’t assure quicker outcomes throughout all applications.
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Editor: Colin Graves
The submit 72,730 Pupil Mortgage Debtors Caught In Forgiveness Backlog appeared first on The Faculty Investor.
